Shocking: Nigeria agency, NALDA pays N18.43 million for a single borehole

A Nigerian agency, the National Agricultural Land Development Authority (NALDA) in a clear example of corruption has spent N18.43 million to construct a single borehole in Ekiti State.

In what appears to be a shocking example of corruption that has played a major role in stunting Nigeria’s development NALDA spent N73,735,368.00 to construct four boreholes in Ekiti State.

Drilling a single borehole in Ekiti State averages below N1.5 million. A hydrology firm told MAWA Foundation that amount should cover drilling and casing, installation of a solar-powered submersible pump, steel tower for the tanks, tanks, pipes, joints & suckers, installation and labour.

In a deal that was struck in collaboration with the Ministry of Agriculture and Rural Development, NALDA claims to have constructed four boreholes at its Farm located in Ekiti State at the price of N18,433,842 each making a total of N73,735,368.00 for the entire project.

The contract was awarded to Hemosom Investments Limited, a company registered on November 27, 2001, with operational headquarters in Surulere Lagos.

Worse still, a visit to the Corporate Affairs Commission (CAC) website shows that Hemosom Investments Limited, a company that carried out the boreholes’ construction has since been declared inactive by the CAC.

Declaring a company inactive by the CAC, shows that it is a tax-evading company and ought not to have gotten a contract from government institutions for not paying tax.

However, how, Hemosom Investments Limited, a tax invading company got a multi-million-naira contract in Nigeria calls for an investigation as that is a total violation of the country’s procurement Act.

When MAWA Foundation sought the response of NALDA, regarding the construction of a single borehole at the cost of N18.43 million, a senior official of the agency who does not want his identity disclosed, described the contract as a typical example of contract inflation that has since become a norm in Nigeria’s system.

Please note: This is not a real picture, used for an illustration.

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